\tOperator Sunrise terminated a bid to acquire cable provider UPC Switzerland from Liberty Global following pressure from a major shareholder, triggering the payment of a CHF50 million ($51 million) compensation fee and incurring additional costs of up to CHF75 million.<\/p>\n
In its Q3 financial update, Sunrise confirmed it had walked away from the share purchase agreement (SPA) struck in February [1]. It expects to take a hit of between CHF70 and CHF75 million consisting of underwriting fees; legal charges; operating expenses; and already incurred integration costs. This is in addition to compensation due to be paid to Liberty Global.<\/p>\n
The make-up of the agreement and valuation of UPC Switzerland had been severely criticised by Sunrise\u2019s largest shareholder Freenet [2], which had threatened to scupper the CHF6.3 billion deal at an extraordinary general meeting (EGM) scheduled to approve measures to finance the deal.<\/p>\n
On the eve of the EGM the meeting was cancelled [3], casting doubt on the future of the transaction.<\/p>\n
The proposal had been vehemently defended by senior executives at the operator throughout the process.<\/p>\n
Responding to Sunrise\u2019s termination of the agreement, Liberty Global CEO Mike Fries said: \u201cWhile we would have preferred to keep the current SPA in place, we understand this move by Sunrise. The Sunrise board has been navigating a difficult situation.”<\/p>\n
\u201cWe look forward to continuing our conversations with either the board or Freenet about a potential transaction that creates significant value for both sets of shareholders and Swiss consumers.\u201d<\/p>\n[1] https:\/\/www.mobileworldlive.com\/featured-content\/top-three\/sunrise-confirms-cable-deal-talks\/
\n[2] https:\/\/www.mobileworldlive.com\/featured-content\/home-banner\/sunrise-at-war-with-top-shareholder-over-cable-deal\/
\n[3] https:\/\/www.mobileworldlive.com\/featured-content\/top-three\/upc-switzerland-deal-in-doubt-as-sunrise-drops-egm\/<\/p>\n","protected":false},"excerpt":{"rendered":"
Operator Sunrise terminated a bid to acquire cable provider UPC Switzerland from Liberty Global following …<\/p>\n
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